Germany's mechanical engineering companies are recovering rapidly from the slump caused by the coronavirus crisis. "For 2021, we confirm our forecast of real production growth of 10% compared to the previous year," said Karl Haeusgen, President of the VDMA industry association at the mechanical engineering summit in Berlin. Without the material bottlenecks, even higher growth of up to 12% would have been possible. "But the uncertain situation in the supply chains is also increasingly preoccupying us."

According to the information, many mechanical engineering companies are likely to reach pre-crisis turnover levels this year. The key industry, which is dominated by SMEs, expects supply difficulties, for example for semiconductors, to continue for some time. However, the consequences will not be as dramatic as in some other sectors, said Haeusgen.

In addition, the order books are well filled, with stocks reportedly sufficient for six to eight months. "Overall, we do not currently see a crisis on the horizon," said Haeusgen. For the coming year, the VDMA continues to expect a further price-adjusted (real) increase in production of 5%.

The export-oriented industry, which sells an average of four out of five machines abroad, is concerned about the confrontation and the drifting apart of the two economic powers USA and China. According to a recent VDMA survey, almost half of mechanical engineering companies source components that are critical for their own production from China or the USA.

Haeusgen hopes that the future German government will be more aware of the importance of foreign trade for Germany. He spoke of an "astounding gap between the importance of foreign trade and its perception in the political arena". The VDMA President said that the topic should be addressed at a relatively high level and suggested the creation of a position in the Chancellor's Office.

In Haeusgen's view, it is crucial to speed up planning and approval procedures in Germany. "In future, it should no longer take five years before a new wind farm can be built," he warned. "Everything we are planning will only work with faster procedures."